Chancellor abandons plan to drop the penny after one day

Charities were worried that scrapping copper change would impact donationsChris Harris for The Times

It’s all change for the Treasury’s plans to scrap 1p and 2p coins. Just 24 hours after the idea was floated by the chancellor in his spring statement, No 10 has signalled a retreat in the face of a public backlash.

The Treasury said that two thirds of 1p and 2p coins were used in only one transaction before being abandoned to savings jars or thrown away as more people use contactless payment technology. “From an economic perspective, having large numbers of denominations that are not in demand . . . does not contribute to an efficient or costeffective cash cycle,” the consultation document said.

Charities and pensioners’ groups raised concerns about the impact on donations and the elderly.